New Delhi, Mar 19 (PTI) Crude oil prices rose Rs 74 to Rs 9,067 per barrel in futures trade on Thursday amid geopolitical tensions in West Asia and concerns over supply disruptions.
Brent Crude futures
crossed USD 116 per barrel in the overseas trade as fresh attacks on key energy infrastructure in the region heightened fears of a tight global supply.
On the Multi Commodity Exchange, crude oil for April delivery increased by Rs 74, or 0.82 per cent, to Rs 9,067 per barrel in a business turnover of 19,221 lots.
In the international market, Brent Oil futures for the May delivery increased by USD 9.61, or nearly 9 per cent, to USD 116.99 per barrel, while West Texas Intermediate for the same month contract rose 1.58 per cent to USD 96.97 per barrel in New York.
"Brent crude futures surged above USD 110 per barrel, extending gains as fresh attacks on critical energy infrastructure in the Middle East intensified fears of disruptions to global oil and gas supplies," Pinky Yadav, Fundamental Analyst, Commodity at Choice Broking, said.
Qatar on Thursday said Iranian missiles caused "extensive damage" to its main gas facility at Ras Laffan, while Kuwait said that its two oil refineries were hit by Tehran.
Hareesh V, Head of Commodity Research, Geojit Investments Ltd, said crude oil prices gained after a strike on Iran's major gas facility and subsequent retaliatory threats targeting Gulf energy sites, intensifying the strain on an already fragile supply chain.
He added that the situation has delayed the reopening of the Strait of Hormuz, which continues to face restrictions amid rising security risks.
Meanwhile, US President Donald Trump said Washington had no prior knowledge of the Israeli strike on Iran's South Pars gas field, part of the world's largest natural gas reservoir, and urged restraint to prevent further escalation in the region.
Analysts said Saudi Arabia faces export challenges amid uncertainty surrounding the Strait of Hormuz from the Middle Eastern producers, despite Iran permitting limited vessel movement, adding uncertainty in prices.
On the outlook, Hareesh said Brent crude is already above USD 110 per barrel, renewed disruptions could elevate prices further toward USD 120 or more as supply losses mount.
"The market's risk premium is set to stay elevated until there is clear de-escalation," he added. PTI HG HG BAL
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